This work, THE APPLICATION OF DIVISION OF COMPANIES TO PUBLIC UTILITIES AND OBLIGATION OF SUPPLY AFTER INTRODUCING COMPETITION,includes five points below. (1) Backgrounds and facts of privatisation and deregulation in public utilities (telecommunications, gas, electricity, water and rail) in the UK.(2) Increase of take-overs and development of restructuring in the UK electricity (distribution sectors). (3) Effects on coal industries by privatisation and division of companies in the UK electricity. (4) Process of privatisation based on separation of train operating companies from track, and franchising system (competitive bidding) in the UK rail. (5) Problems of the UK public utilities in the way of promoting competition and lessons to the Japanese utilities.In the public utilities which supply services by network system, measures to separate pipelines or tracls from other businesses are implemented. Transmission is separated from generation in electricity. Track is separated from passe
… Morenger train operation in rail. Grid business in electricity and track business in rail are judged as natural monopoly. It is possible to promote competition in the other businesses, generation and retail sectors or lease of trains and train operating sectors. This idea is applicable to other public utilities.New entrants are able to access freely to network as the existing companies were divided into some independent companies in the UK gas, electricity and rail. In telecommunications separation of accounting is implemented in order to ensure fair access for new entrants. While the reform of public utilities is developing from the viewpoint of promoting competition, monitoring of the dominant firms and new regulation by price-cap are regarded as important measures. But universal services as one aspect of supply obigation has not been thought seriously. When integrated supply systems are splitted off throgh vertical division of companies, it is necessary to establish universal service fund by companies and public organization. Less